Two major Scottish tractor dealers saw a boost in sales last year, however this year will be more challenging as low farmgate prices take hold.
Turnover increased at CaseIH and JCB specialist dealer A.M. Phillip Agritech and New Holland and Grimme specialist dealer Agricar in the year ended December 31, 2013.
Accounts filed at Companies House reveal mixed fortunes for the companies with pre-tax profits up 11.5% at A.M. Phillip Agritech, but down 30.7% at Agricar.
A.M. Phillip Agritech, which has depots in Huntly, Conon Bridge, Forfar, Fraserburgh, Perth and Glenrothes, reported a 2% boost in turnover to £30.022million, from £29.388million previously.
This was against a £68,995 jump in pre-tax profits to £380,962.
Pay for the company’s nine directors rose slightly to £250,395 with the highest paid direct receiving £66,701.
In accounts the firm said it expected turnover at its new depot in Perth, which opened in July 2013, to be around £1million this year.
It predicted an increase in sales this year and confirmed investment was being made at its Huntly depot to improve parts storage and extend the existing showroom.
On sales this year, the firm’s sales director for the north, Andrew Conon, said: “We have had a good year to date, but I think it will tail off in the next three months as the reality of some prices [on farm] kicks in.”
Meanwhile, Forfar-headquartered Agricar, which has depots in Laurencekirk, Blairgowrie, Perth, Dundonald and Stirling, reported a 7.5% increase in turnover to £38.974million, from £36.232million the year before.
This was against a £121,017 drop in pre-tax profits to £272,562.
The firm hailed a successful year, having expanded operations in 2012 with the opening of a parts outlet in Blairgowrie, which was operational throughout 2013.
Pay for the company’s five directors increased by 45% to £535,391, with the highest paid director taking home £116,475 in the year.
Managing director John Milne told the Press and Journal the firm had performed well in 2013 but the outlook for this year was “grim”.
“Things are very uncomfortable. Sales have practically gone as low as they have ever done. From June onwards everything has slowed down,” said Mr Milne, who said uncertainty over Cap reform and in the run up to the independence referendum had hit sales.
“We are very dependent on the farming business so if farming takes a knock back then it undoubtedly gets to us in the short-term. If the farming community can move its produce and if cattle and stock levels get better, then we will be rewarded.”
Figures published by the Agricultural Engineers Association reveal a 12.9% drop in UK agricultural tractor registrations in September at 1,082 units.
The number of tractors registered to date is still 3.5% ahead of last year at 10,533 units.